Second Quarter 1995 Earnings
ARLINGTON, Va. — Gannett earned $1.00 per share in the second quarter of 1995, a gain of 11 percent over 1994 earnings of 90 cents per share.
Approximately 140 million shares were outstanding in the 1995 quarter, compared to 147 million shares a year ago. In the third quarter of 1994, Gannett repurchased 8 million common shares.
Net income advanced 6 percent to $139,423,000, compared to $131,773,000 in 1994. Operating revenues gained 5 percent to $1,013,921,000 , from $966,881,000 in the year-earlier quarter. Operating income was 7 percent higher at $246,399,000. In the second quarter of 1994, operating income was $230,684,000.
For the first six months, earnings per share advanced 13 percent to $1.61, compared to $1.43 in 1994. Net income was $225,629,000, compared to $210,484,000. Operating revenues were 5 percent higher at $1,927,741,000, while operating profit gained 8 percent to $403,566,000.
In a statement, the Company said each division reported higher earnings in the quarter. Broadcasting results reached a new record, and outdoor earnings were significantly improved. The growth of newspaper earnings was tempered by a 34 percent rise in newsprint costs.
Newspaper earnings grew 3 percent to $205,349,000. Segment revenues advanced 4 percent to $824,473,000. Pro forma newspaper advertising volume gained 4 percent and pro forma ad revenues grew 5 percent, including a 6 percent increase in classified advertising.
At USA TODAY, advertising pages gained 5 percent to 1,044, compared to 996 in the second quarter of 1994. Advertising revenues advanced 8 percent. For the first half, paid pages totaled 1,921 compared to 1,927 last year, and advertising revenues grew 5 percent.
Broadcasting earnings jumped 20 percent to $47,366,000 as revenues gained 12 percent to $120,880,000. Television results include the operations of KTHV-TV in Little Rock, purchased in December 1994. Strong demand for television advertising propelled pro forma revenues 11 percent higher in the second quarter. Radio revenues gained 5 percent.
Outdoor income advanced 36 percent in the quarter to $11,112,000. Segment revenues gained 9 percent to $68,568,000, reflecting strong gains in national advertising.
Gannett is a nationwide news and information company that publishes 82 daily newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine. Gannett also operates 10 television stations, 11 radio stations and the largest outdoor advertising company in North America.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Gannett Co., Inc. and Subsidiaries
Thirteen weeks ended
June 25, 1995 June 26, 1994
Net Operating Revenues:
Newspaper advertising $ 567,134,000 $540,150,000
Newspaper circulation 214,045,000 212,945,000
Broadcasting 120,880,000 107,493,000
Outdoor advertising 68,568,000 63,181,000
Other 43,294,000 43,112,000
Total 1,013,921,000 966,881,000
Operating Expenses:
Cost of sales and operating expenses
exclusive of depreciation 542,372,000 516,083,000
Selling, general and administrative
expenses, exclusive of depreciation 174,806,000 168,458,000
Depreciation 38,983,000 40,511,000
Amortization of intangible assets 11,361,000 11,145,000
Total 767,522,000 736,197,000
Operating income 246,399,000 230,684,000
Non-operating income (expense):
Interest expense (10,878,000) (10,729,000)
Other (1,198,000) 1,418,000
Total (12,076,000) (9,311,000)
Income before income taxes 234,323,000 221,373,000
Provision for income taxes 94,900,000 89,600,000
Net income $ 139,423,000 $131,773,000
Net income per share $1.00 $0.90
Dividends per share $0.34 $0.33
Twenty-six weeks ended
June 25, 1995 June 26, 1994
Net Operating Revenues:
Newspaper advertising $1,083,876,000 $1,032,394,000
Newspaper circulation 426,009,000 425,085,000
Broadcasting 217,863,000 191,500,000
Outdoor advertising 119,164,000 110,102,000
Other 80,829,000 84,425,000
Total 1,927,741,000 1,843,506,000
Operating Expenses:
Cost of sales and operating expenses
exclusive of depreciation 1,076,594,000 1,032,507,000
Selling, general and administrative
expenses, exclusive of depreciation 346,583,000 334,403,000
Depreciation 78,242,000 81,001,000
Amortization of intangible assets 22,756,000 22,455,000
Total 1,524,175,000 1,470,366,000
Operating income 403,566,000 373,140,000
Non-operating income (expense):
Interest expense (22,610,000) (21,897,000)
Other (1,727,000) 2,441,000
Total (24,337,000) (19,456,000)
Income before income taxes 379,229,000 353,684,000
Provision for income taxes 153,600,000 143,200,000
Net income $ 225,629,000 $ 210,484,000
Net income per share $1.61 $1.43
Dividends per share $0.68 $0.66
BUSINESS SEGMENT DATA
Thirteen weeks ended
June. 25, 1995 June 26, 1994
OPERATING REVENUES:
Newspaper publishing $ 824,473,000 $796,207,000
Broadcasting 120,880,000 107,493,000
Outdoor advertising 68,568,000 63,181,000
Total $1,013,921,000 $966,881,000
OPERATING INCOME (NET OF DEPRECIATION AND AMORTIZATION)
Newspaper publishing $205,349,000 $200,097,000
Broadcasting 47,366,000 39,486,000
Outdoor advertising 11,112,000 8,185,000
Corporate (17,428,000) (17,084,000)
Total $246,399,000 $230,684,000
DEPRECIATION & AMORTIZATION
Newspaper publishing $36,692,000 $37,570,000
Broadcasting 7,006,000 7,008,000
Outdoor advertising 4,229,000 4,668,000
Corporate 2,417,000 2,410,000
Total $50,344,000 $51,656,000
Twenty-six weeks ended
June. 25, 1995 June 26, 1994
OPERATING REVENUES:
Newspaper publishing $1,590,714,000 $1,541,904,000
Broadcasting 217,863,000 191,500,000
Outdoor advertising 119,164,000 110,102,000
Total $1,927,741,000 $1,843,506,000
OPERATING INCOME (Net of Depreciation and Amortization)
Newspaper publishing $356,090,000 $342,756,000
Broadcasting 73,606,000 60,659,000
Outdoor advertising 8,284,000 3,456,000
Corporate (34,414,000) (33,731,000)
Total $403,566,000 $373,140,000
Depreciation & Amortization
Newspaper publishing $73,416,000 $75,143,000
Broadcasting 14,070,000 14,089,000
Outdoor advertising 8,434,000 9,240,000
Corporate 5,078,000 4,984,000
Total $100,998,000 $103,456,000