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Mar 31, 2020
Gannett Q1 2020 Earnings Report
Reported solid financial results despite the disruption experienced from the COVID-19 pandemic.
Key Takeaways
Gannett reported strong first quarter revenue and Adjusted EBITDA performance despite impact from COVID-19. The company implemented $75 million in annualized synergies and ended the quarter with approximately $200 million of cash and cash equivalents.
First quarter revenues of $948.7 million rose 144.8% as compared to the prior year, reflecting the Acquisition.
Digital advertising and marketing services revenues were $219.2 million, or 23.1% of total revenues.
Over $75 million in annualized synergy measures were implemented, with approximately $19 million in savings recognized in the quarter.
Adjusted EBITDA totaled $99.1 million, despite the negative revenue impact related to the COVID-19 pandemic.
Forward Guidance
Gannett expects $140 million in annualized synergy measures to be implemented by the end of the second quarter, with $35 - $40 million of synergies savings to be recorded in the second quarter.
Positive Outlook
- Reducing expenses for the second quarter by $100 - $125 million through implementation of furloughs, significant pay reductions, reductions in force, and cancellation of non-essential travel and spending.
- Reduced planned capital expenditures for 2020 by approximately 20%.
- Suspended quarterly dividend until conditions improve.
- Implemented NOL Rights Plan to protect approximately $435 million in tax assets.
- Transitioned 95% of our non-production and delivery employees to work from home by late March.
Challenges Ahead
- The impact on our business from the pandemic came fast and is significant.
- Same store pro forma revenues decreased 10.0%, approximately in line with Q4 2019 performance, including the negative impact of approximately $17.0 million related to the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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