First Quarter 1995 Earnings
ARLINGTON, Va. — Gannett earned 62 cents per share in the first quarter of 1995, a gain of 15 percent over 1994 earnings of 54 cents per share.
Approximately 140 million common shares were outstanding in the 1995 quarter, compared to 147 million shares a year ago.
Net income advanced 10 percent to $86,206,000, compared to $78,711,000 in 1994. Operating revenues gained 4 percent to $913,820,000, from $876,625,000 in the year-earlier quarter. Operating income was 10 percent higher at $157,167,000. In the first quarter of 1994, operating income was $142,456,000.
In a statement, the company said each division reported improved results in the quarter. Newspaper earnings advanced, reflecting the impact of strong classified advertising, tempered by higher newsprint costs. Broadcasting reported a strong earnings gain, despite a program cost adjustment related to the pending change of affiliation by KUSA-TV in Denver to NBC later this year. Outdoor’s seasonal loss was significantly lower due to improved occupancy rates.
Newspaper earnings grew 6 percent to $150,741,000. Revenues advanced 3 percent to $766,241,000. Newspaper advertising volume advanced 3 percent and ad revenues gained 5 percent, including a 12 percent increase in classified revenues.
At USA TODAY, advertising pages numbered 877, down 6 percent from last year’s 931, which included promotions related to the Winter Olympics. Advertising revenue was two percent higher in 1995.
Broadcasting results included the operations of KTHV-TV in Little Rock, purchased in December 1994. Segment earnings increased 24 percent to $26,240,000, as revenues gained 15 percent to $96,983,000. Radio revenues advanced 13 percent, reflecting improved market shares and healthy demand. The television market was especially vibrant, and pro forma revenues advanced 12 percent from the 1994 level, which was buoyed by the Winter Olympics.
Outdoor revenues gained 8 percent in the quarter, reflecting good gains in poster and bulletin sales. The seasonal operating loss fell 40 percent to $2,828,000 as most markets reported improved results.
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
Mar. 26, 1995 Mar. 27, 1994
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NET OPERATING REVENUES:
Newspaper advertising............... $516,742,000 $492,244,000
Newspaper circulation............... 211,964,000 212,140,000
Broadcasting........................ 96,983,000 84,007,000
Outdoor advertising................. 50,596,000 46,921,000
Other............................... 37,535,000 41,313,000
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Total............................... 913,820,000 876,625,000
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OPERATING EXPENSES:
Cost of sales and operating expenses,
exclusive of depreciation.......... 534,222,000 516,424,000
Selling, general and administrative
expenses, exclusive of depreciation 171,777,000 165,945,000
Depreciation........................ 39,259,000 40,490,000
Amortization of intangible assets... 11,395,000 11,310,000
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Total............................... 756,653,000 734,169,000
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OPERATING INCOME.................... 157,167,000 142,456,000
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NON-OPERATING INCOME (EXPENSE)
Interest expense.................... (11,732,000) (11,168,000)
Other............................... (529,000) 1,023,000
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Total............................... (12,261,000) (10,145,000)
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Income before income taxes.......... 144,906,000 132,311,000
Provision for income taxes.......... 58,700,000 53,600,000
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Net income.......................... $ 86,206,000 $ 78,711,000
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Net income per share................ $0.62 $0.54
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Dividends per share................. $0.34 $0.33
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BUSINESS SEGMENT DATA
Thirteen Weeks Ended
Mar. 26, 1995 Mar. 27, 1994
OPERATING REVENUES:
Newspaper publishing....... $766,241,000 $745,697,000
Broadcasting............... 96,983,000 84,007,000
Outdoor advertising........ 50,596,000 46,921,000
$913,820,000 $876,625,000
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OPERATING INCOME (Net of Depreciation and Amortization)
Newspaper publishing....... $150,741,000 $142,660,000
Broadcasting............... 26,240,000 21,173,000
Outdoor advertising........ (2,828,000) (4,729,000)
Corporate.................. (16,986,000) (16,648,000)
$157,167,000 $142,456,000
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Depreciation & Amortization
Newspaper publishing....... $36,724,000 $37,573,000
Broadcasting............... 7,064,000 7,081,000
Outdoor advertising........ 4,205,000 4,572,000
Corporate.................. 2,661,000 2,574,000
$50,654,000 $51,800,000
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