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Dec 31, 2019
Gannett Q4 2019 Earnings Report
Gannett's financial performance was reported for Q4 2019, reflecting the acquisition of Legacy Gannett and the initial stages of integration.
Key Takeaways
Gannett reported Q4 2019 results that include the acquisition of Legacy Gannett. While GAAP revenues increased, the company experienced a net loss. Synergies and debt repayment are ahead of schedule, but same store trends weakened. The company is confident in achieving synergy targets and improving revenue trends.
GAAP revenues increased due to the acquisition of Legacy Gannett, but same store revenues for both Legacy Gannett and Legacy New Media declined.
Pro forma digital advertising and marketing services revenues reached $231.8 million, representing 22.0% of total pro forma revenues.
GAAP net loss attributable to Gannett was $95.1 million, impacted by one-time non-cash write-downs and cash charges.
Adjusted EBITDA totaled $98.8 million, with a pro forma Adjusted EBITDA of $141.2 million.
Forward Guidance
Gannett expects to implement measures resulting in over $60 million in annualized savings by the end of Q1 2020 and to realize $10 - $15 million of savings in the first quarter and further savings in each subsequent quarter. Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies, with more than half of such measures expected to be completed in 2020.
Positive Outlook
- The Company expects to have implemented measures that will result in over $60 million in annualized savings by the end of the first quarter of 2020.
- The Company expects to realize $10 - $15 million in savings in the first quarter of 2020.
- The Company anticipate additional savings in each subsequent quarter, as it continues to implement synergies throughout the year.
- Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies.
- More than half of such measures expected to be completed in 2020.
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