Corporate just disclosed a big surge in earnings and revenue for the fourth quarter, beating analysts expectations, and offering more encouraging signs of Gannett's recovery from the depths of the newspaper industry's decline.
Adjusted for special items, GCI earned 89 cents per share vs. 72 cents in the year-before quarter. Revenue jumped 9.4% to $1.52 billion from $1.39 billion.
Wall Street media analysts had forecast EPS of 88 cents and revenue of $1.49 billion, according to a survey by Thomson Financial.
In pre-market trading, GCI's stock was recently at $20.14, up 30 cents or 1.5%. GCI's 52 week high was set recently at $20.61, according to Google Finance.
Excerpts from the release
Gannett today reported strong fourth quarter financial results. Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were $0.44 for the fourth quarter of 2012 compared to $0.49 for the same quarter last year. Excluding special items in both years, fourth quarter earnings per diluted share were $0.89 in 2012 compared to $0.72 in the fourth quarter of 2011, a 23.6% increase.
CEO Gracia Martore said, "We are proud of our strong operating results this quarter with growth in revenue and margin expansion driving strong cash flow. This caps an extremely productive year in which we successfully implemented our strategy to position Gannett for success in the digital era. For the year, we achieved our first year-over-year increase in company-wide revenue since 2006. During the fourth quarter and for the full year, our Broadcasting business delivered record revenue and profitability. Our television stations significantly increased market share this year reflecting the value of their content and format in gaining new viewers while retaining their loyal base.
"Not to be outdone, local domestic publishing circulation revenue also increased for the third straight quarter driven by the success of our all access content subscription model. We are meeting or exceeding the revenue and operating profit goals we had for the all access content subscription model. Total digital revenue across Gannett increased 29% and represented 25% of total revenue.
"Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders," Martore said.
Results for the fourth quarter of 2012 include special charges affecting operating income. Non-cash asset impairments, efficiency-driven facility consolidation and workforce restructuring charges totaled $114.6 million ($101.9 million after tax or $0.44 per share). Non-operating items include a $3.8 million ($2.3 million after tax or $0.01 per share) non-cash charge related to the impairment of a minority owned investment.
Results for the fourth quarter of 2011 included special charges affecting operating income of $78.4 million ($49.0 million after-tax or $0.20 per share). Non-operating items for the fourth quarter of 2011 included special charges related to the impairment of certain minority-owned investments that totaled $28.4 million ($17.2 million after-tax or $0.07 per share). In addition, a special tax benefit of $10.7 million or $0.04 per share was recorded.
Adjusted for special items, GCI earned 89 cents per share vs. 72 cents in the year-before quarter. Revenue jumped 9.4% to $1.52 billion from $1.39 billion.
Wall Street media analysts had forecast EPS of 88 cents and revenue of $1.49 billion, according to a survey by Thomson Financial.
In pre-market trading, GCI's stock was recently at $20.14, up 30 cents or 1.5%. GCI's 52 week high was set recently at $20.61, according to Google Finance.
Excerpts from the release
Gannett today reported strong fourth quarter financial results. Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were $0.44 for the fourth quarter of 2012 compared to $0.49 for the same quarter last year. Excluding special items in both years, fourth quarter earnings per diluted share were $0.89 in 2012 compared to $0.72 in the fourth quarter of 2011, a 23.6% increase.
CEO Gracia Martore said, "We are proud of our strong operating results this quarter with growth in revenue and margin expansion driving strong cash flow. This caps an extremely productive year in which we successfully implemented our strategy to position Gannett for success in the digital era. For the year, we achieved our first year-over-year increase in company-wide revenue since 2006. During the fourth quarter and for the full year, our Broadcasting business delivered record revenue and profitability. Our television stations significantly increased market share this year reflecting the value of their content and format in gaining new viewers while retaining their loyal base.
"Not to be outdone, local domestic publishing circulation revenue also increased for the third straight quarter driven by the success of our all access content subscription model. We are meeting or exceeding the revenue and operating profit goals we had for the all access content subscription model. Total digital revenue across Gannett increased 29% and represented 25% of total revenue.
"Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders," Martore said.
Results for the fourth quarter of 2012 include special charges affecting operating income. Non-cash asset impairments, efficiency-driven facility consolidation and workforce restructuring charges totaled $114.6 million ($101.9 million after tax or $0.44 per share). Non-operating items include a $3.8 million ($2.3 million after tax or $0.01 per share) non-cash charge related to the impairment of a minority owned investment.
Results for the fourth quarter of 2011 included special charges affecting operating income of $78.4 million ($49.0 million after-tax or $0.20 per share). Non-operating items for the fourth quarter of 2011 included special charges related to the impairment of certain minority-owned investments that totaled $28.4 million ($17.2 million after-tax or $0.07 per share). In addition, a special tax benefit of $10.7 million or $0.04 per share was recorded.
Does this mean no more furloughs?
ReplyDeleteI'm thrilled that overall revenue is up but still concerned about the continued decline in advertising revenue on the print side. I suspect more cuts of some sort given the year-over-year expense increase across all platforms.
ReplyDeleteYou have to wonder how Gannett's rising digital revenues match up with its print revenue declines. It looks like they don't come close. I'd love to see an analysis like this one but with just Gannett numbers: http://2.bp.blogspot.com/-fZ5w3CsB-CQ/ULPuCL6a6LI/AAAAAAAABVc/qg4VC3IIA6A/s1600/q3+2012+newspaper+sales.pptx.jpeg
ReplyDeleteGannett's TV revenue was up 46% in 2012/Q4 thanks to political advertising and also to higher retransmission consent fees. The company did warn that its 2013/Q1 projection will not be as strong due in part to the Super Bowl being on CBS.
ReplyDeleteTo just emphasize the newspapers and regard TV as an afterthought is being self-centered, not to mention narrow-minded.
TV revenue growth slowdown forecast:
Deletehttp://www.bloomberg.com/news/2013-02-04/gannett-profit-tops-analysts-estimates-on-election-advertising.html?cmpid=yhoo
No surprises here, except the $1 drop in the stock price isn't as bad as I thought it would be. Forward comps take into account that they'll be against political season and Olympic numbers, which are extraordinary occurrences.
The elections were very, very good to our television holdings -- and all of us should be happy to see a quarterly report like this. Sadly, however, the decisions that will be made on furloughs will be based not on these happy numbers, but the numbers forecasted to come this quarter (which will lack the election power boost).
ReplyDeleteVictoria Harker said NO FURLOUGHS in the first quarter. One of the analysts congratulated Gracia on doing a great job. A lovely way to start the week!!!!
ReplyDeleteNot so fast as…
ReplyDeleteGannett's Profit Slipped 12%
Print ad revenue down 2%; down 6.5% if extra week of sales in 4th quarter was excluded.
Digital revenue up 29%, mostly from digital subscriptions that won’t maintain that pace, numbers that mask print subscriptions/days taken which must be down.
Improved revenue buoyed by extra week of sales, strong digital and political – all of which says this quarter and beyond still raises doubts, more so as Gannett appears far from done in “restructuring.”
Who wants to bet Executive Compensation will beat forecasts as well? But then that never really goes down, does it?
ReplyDeletePlese tell me what exactly it is we're supposed to be encouraged with? Including one-time items, earnings came in at 44 cents a share compared with 49 cents in the comparable prior-year quarter.
ReplyDelete