Monday, October 21, 2013

Urgent: Gannett reports Q3 financial results

Here's this morning's press release:

Gannett reported non-GAAP (generally accepted accounting principles) earnings per diluted share of $0.43 for the third quarter compared to $0.56 for the same quarter last year. Results were driven by higher revenue in the Digital Segment as well as substantial revenue growth in the Broadcasting Segment excluding the cyclical impact of Olympic and political advertising.

In June, the company entered into a definitive merger agreement with Belo Corp. (Belo) under which Gannett will acquire all outstanding shares of Belo for $13.75 per share in cash, or approximately $1.5 billion, plus the assumption of $715 million in existing debt for an enterprise value of approximately $2.2 billion. This transaction was approved by Belo shareholders during the quarter. However, the transaction is subject to antitrust and Federal Communications Commission (FCC) approval and other customary closing conditions.

Gracia Martore, president and chief executive officer, said, "In the third quarter, we continued to take steps to further expand our digital offerings and execute across all of our media and marketing platforms. We achieved a 12 percent increase in digital revenue company-wide, which underscores our ongoing evolution into a more highly diversified, higher margin multi-media company. In our Broadcast and Publishing businesses, despite challenging comparisons to third quarter 2012 -- which benefited from Summer Olympic advertising, record political spending and the significant ramp-up of our content subscription model -- we performed well. Total company-wide third quarter 2013 revenue was essentially flat, excluding the incremental impact from Olympic and political spending last year."

Martore added, "We are also pleased that during the quarter, Belo shareholders approved the pending acquisition, and we continue to anticipate bringing the transaction to a close following the attainment of regulatory approvals. We are working towards a seamless integration that will accelerate our transformation and create an even stronger Gannett."


Operating revenues for the company were $1.25 billion in the third quarter compared to $1.31 billion during the same quarter a year ago. These results reflect an increase in Digital Segment revenues offset by lower revenues in Publishing and Broadcasting. Publishing Segment revenues were impacted by softer advertising demand and circulation revenue comparisons due to the roll out of the All Access Content Subscription Model last year. The decline in Broadcasting Segment revenue reflects the cyclical absence of $75 million of Olympic and political advertising which generated incremental revenues in the same period a year ago.

Net income attributable to Gannett on a non-GAAP basis (excluding special items) was $99.8 million in the third quarter while net income attributable to Gannett on a GAAP basis totaled $79.7 million. Earnings per diluted share on a non-GAAP basis totaled $0.43 compared to $0.56 for the third quarter in 2012. Earnings per diluted share on a GAAP basis were $0.34 for the third quarter.

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