Gannett Executives Speak at the UBS Media and Communications Conference
McLEAN, VA – Gannett (NYSE: GCI) executives at the UBS Media and Communications Conference today reported on the company’s strategic efforts, its preliminary results for the fourth quarter and presented the company’s outlook for 2011. CareerBuilder’s president and chief executive officer also presented with Gannett, which owns 51 percent of the global leader in human capital solutions.
Craig A. Dubow, Gannett’s chairman and chief executive officer, reviewed Gannett’s performance over the last year and said the company has progressed with its strategic efforts in 2010 and is well positioned for growth in 2011.
“2010 has been a significant year for us on several fronts and we are a stronger company now than we were just twelve months ago,” he said. “Gannett substantially improved its financial performance this year and took significant strides to create efficiencies and align expenses with revenue opportunities. We further strengthened our balance sheet and enhanced our financial flexibility. We see a great deal of promise in each of our businesses and are positioned to act on new opportunities that will drive our future progress and growth.”
Bob Dickey, president of U.S. Community Publishing, discussed changes underway across all aspects of publishing that are leading to stronger financial results. “Our transformative efforts have enabled us to retain readers of our valued community publications and capture new digital advertisers and readers. Advertising trends are improving at the local level in many segments because of the changes put into place,” Dickey said. “We enter 2011 confident about our position. Consumers value our content, trust our brands and we continue to deliver improved products and services across all the platforms available to us.”
Dave Lougee, president of Gannett Broadcasting, noted the strong political and core advertising that drove significant revenue growth and profitability in 2010. “We are finishing the year on a very strong note. Our political footprint is always good and it was this year.” Commenting on the outlook for 2011, Lougee noted, “We remain optimistic given the limited visibility we have. In January, auto is pacing very well for us and all of our major categories are pacing positively. Marketers returned to local television in 2010 because it works and there is every indication that will continue.”
Matt Ferguson, president and chief executive officer of CareerBuilder, reviewed the online employment outlook, CareerBuilder’s position in the market and its international expansion. “Employers are definitely more optimistic, and we believe we’ll see that reflected in stronger hiring trends in 2011 and beyond. Our leadership in the industry is well established and more companies work with CareerBuilder because we have better offerings and return better results,” Ferguson said. “Looking ahead, we’re optimistic about the improving labor market and our ability to grow our revenue and continue to gain market share against all competitors domestically and globally.”
Reporting on Newsquest and Digital segment results, Gracia Martore, president and chief operating officer, said, “The UK economic environment remains challenging. While Newsquest remains solidly profitable, the management team there will continue to work to align expenses with revenues as several factors could impact the health of the economy and the advertising environment in 2011.” Regarding Gannett’s Digital segment, Martore said, “We expect continued growth in CareerBuilder’s revenue in line with stronger hiring trends and its strong product diversification. Positive revenue trends for PointRoll and ShopLocal are expected to continue and overall digital revenues and profitability will be up.”
Martore also reported on company-wide results for 2010 and some key assumptions for 2011. “Most analysts’ estimates for fourth quarter EPS range from 72 cents to 82 cents. At this point, we are comfortable at the high end of that range,” she said.
Speeches by the Gannett executives will be available by Webcast for 30 days at www.gannett.com.
Attached to this release and posted on the company’s Web site under Investor Relations are Gannett’s operating assumptions for 2011.
Gannett Co., Inc. (NYSE: GCI) is an international news and information company operating on multiple platforms including the Internet, mobile, newspapers, magazines and TV stations. Gannett is an Internet leader with hundreds of newspaper and TV web sites; CareerBuilder.com, the nation’s top employment site; USATODAY.com; and more than 80 local MomsLikeMe.com sites. Gannett publishes 82 daily U.S. newspapers, including USA TODAY, the nation’s largest-selling daily newspaper, and more than 600 magazines and other non-dailies including USA WEEKEND. Gannett also operates 23 television stations in 19 U.S. markets. Gannett subsidiary Newsquest is one of the UK’s leading regional community news providers, with 17 daily paid-for titles, more than 200 weekly newspapers, magazines and trade publications, and a network of web sites.
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating assumptions for 2011, may be deemed “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the company’s ability to obtain these results include, without limitation, the following factors: (a) increased consolidation among major retailers or other events which may adversely affect business operations of major customers and depress the level of local and national advertising; (b) a continuance of the economic recessionary conditions in the U.S. and the UK or a further economic downturn leading to a continuing or accelerated decrease in circulation or local, national or classified advertising; (c) a decline in general newspaper readership and/or advertiser patterns as a result of competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (i) an increase in interest rates; (j) a weakening in the British pound to U.S. dollar exchange rate; (k) volatility in financial and credit markets which could affect the value of retirement plan assets and the Company’s ability to raise funds through debt or equity issuances; (1) changes in the regulatory environment; (m) an other than temporary decline in operating results and enterprise value that could lead to further non-cash goodwill, or other intangible asset or property, plant and equipment impairment charges; (n) credit rating downgrades, which could affect the availability and cost of future financing; and (o) general economic, political and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are disclosed from time to time in the Company’s current and periodic SEC reports. Any forward-looking statements in this press release should be evaluated in light of these important risk factors.
Gannett is not responsible for updating the information contained in these assumptions beyond the published date, or for changes made to the assumptions by wire services, Internet service providers or other media.
For media inquiries, contact:
Robin Pence
Vice President of Corporate Communications
(703) 854-6049
rpence@gannett.com
For investor inquiries, contact:
Jeffrey Heinz
Director, Investor Relations
(703) 854-6917
jheinz@gannett.com
GANNETT CO., INC. OPERATING ASSUMPTIONS - 2011 Publishing A. Headcount down low-single digits primarily due to carryover effect of actions taken previously. B. Other costs down slightly. Television A. Total costs are expected to be down in the low single digits. Digital A. Headcount up mid-single digits. B. Costs up high-single digits. Newsprint A. Domestic costs will increase in the high-teens. B. Newsquest costs will increase in the mid-teens. CONSOLIDATED GANNETT A. Capital Expenditures 1. 2011 Plan $75,000,000 2. 2010 Estimate $65,000,000 - $75,000,000 B. Depreciation 1. 2011 Plan $169,000,000 2. 2010 Estimate $183,000,000 C. Amortization of Intangibles (Goodwill and Other) 1. 2011 Plan $29,700,000 2. 2010 Estimate $31,300,000 D. Benefit Costs 1. Pension expense will be $15 million to $20 million below 2010. 2. Health care costs will be slightly above 2010. E. Interest Expense We expect our debt at the beginning of the year to be about $2.3 billion. For budget purposes only, we have assumed that all of our free cash flow will be used to pay down debt. F. Tax Rate The tax rate for 2011 will be approximately 35.0%, depending on the mix of earnings. G. 2010 Revenue Items 1. Political -- $88 million (estimate for full year) 2. Olympic Games -- $19 million (all in first quarter) 3. Super Bowl -- $2 million (all in first quarter)
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating assumptions for 2011, may be deemed “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the company’s ability to obtain these results include, without limitation, the following factors: (a) increased consolidation among major retailers or other events which may adversely affect business operations of major customers and depress the level of local and national advertising; (b) a continuance of the economic recessionary conditions in the U.S. and the UK or a further economic downturn leading to a continuing or accelerated decrease in circulation or local, national or classified advertising; (c) a decline in general newspaper readership and/or advertiser patterns as a result of competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (i) an increase in interest rates; (j) a weakening in the British pound to U.S. dollar exchange rate; (k) volatility in financial and credit markets which could affect the value of retirement plan assets and the Company’s ability to raise funds through debt or equity issuances; (1) changes in the regulatory environment; (m) an other than temporary decline in operating results and enterprise value that could lead to non-cash goodwill, or other intangible asset or property, plant and equipment impairment charges; (n) credit rating downgrades, which could affect the availability and cost of future financing; and (o) general economic, political and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are disclosed from time to time in the Company’s current and periodic SEC reports. Any forward-looking statements in this press release should be evaluated in light of these important risk factors.
Gannett is not responsible for updating the information contained in these assumptions beyond the published date, or for changes made to the assumptions by wire services, Internet service providers or other media.