For immediate release
Six unions representing 2,500 workers struck Detroit Newspapers on July 13. The agency has published every day despite the strike. However, additional costs for temporary workers and security, coupled with lower revenues, created losses in Detroit which reduced earnings per share by approximately 15 cents in the quarter.
Net income fell 9 percent to $96,101,000, compared to $105,531,000 in 1994. Operating revenues were flat at $932,261,000, compared to $932,427,000 in the year-earlier quarter. Operating income fell 10 percent to $169,414,000. In
the third quarter of 1994, operating income was $187,255,000.
Average shares outstanding in the quarter totaled 140,181,000, compared to 143,465,000 in 1994. During last year’s third quarter, the company repurchased about 8 million of its common shares.
For the nine months, earnings per share advanced 6 percent to $2.30, compared to $2.17 in 1994. Net income was $321,730,000, compared to $316,015,000. Operating revenues were 3 percent higher at $2,860,002,000, while operating profit gained 2 percent to $572,980,000.
In a statement, the company said that its broadcasting operations achieved record profits in the quarter, and outdoor earnings continued to improve. Excluding the impact of the strike, newspaper profits gained modestly, despite sharply higher newsprint costs.
Newspaper earnings fell 19 percent to $136,344,000. Segment revenues fell 1 percent to $760,075,000, reflecting reduced advertising and circulation revenues in Detroit. Excluding Detroit, pro forma advertising volume was flat and advertising revenues were 3 percent higher, including a 6 percent gain in classified advertising.
At USA TODAY, paid advertising pages gained 5 percent to 853 from 812 in the third quarter of 1994. Advertising revenues advanced 8 percent. For the nine months, paid pages totaled 2,779 in 1995, compared to 2,740 in 1994, and advertising revenues grew 6 percent.
Broadcasting earnings jumped 41 percent to $38,513,000 as revenues gained 10 percent to $104,787,000. Television results included the operations of KTHV-TV in Little Rock, purchased in December 1994. Strong demand for television
advertising continued in the third quarter, pushing pro forma revenues up 7 percent. Radio revenues gained 10 percent.
Outdoor income advanced 39 percent in the quarter to $9,723,000. Segment revenues gained 2 percent to $67,399,000.
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. On July 24, 1995,
Gannett agreed to purchase Multimedia, Inc., a diversified media company based in Greenville, S.C.
Third Quarter 1995 Earnings
ARLINGTON, Va. — Reflecting the costs associated with a strike against its Detroit newspaper, Gannett reported that earnings per share fell to 69 cents in the third quarter, from 74 cents in the 1994 quarter.
the third quarter of 1994, operating income was $187,255,000.
advertising continued in the third quarter, pushing pro forma revenues up 7 percent. Radio revenues gained 10 percent.
Gannett agreed to purchase Multimedia, Inc., a diversified media company based in Greenville, S.C.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
Gannett Co., Inc. and Subsidiaries
Thirteen weeks ended
Sept. 24, 1995 Sept. 25, 1994
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Net Operating Revenues:
Newspaper advertising $508,821,000 $521,938,000
Newspaper circulation 209,445,000 210,724,000
Broadcasting 104,787,000 95,189,000
Outdoor advertising 67,398,000 65,929,000
Other 41,810,000 38,647,000
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Total 932,261,000 932,427,000
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Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 546,196,000 524,016,000
Selling, general and administrative
expenses, exclusive of depreciation 166,953,000 167,447,000
Depreciation 38,336,000 42,203,000
Amortization of intangible assets 11,362,000 11,506,000
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Total 762,847,000 745,172,000
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Operating income 169,414,000 187,255,000
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Non-operating income (expense):
Interest expense (9,113,000) (10,307,000)
Other 1,100,000 (217,000)
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Total (8,013,000) (10,524,000)
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Income before income taxes 161,401,000 176,731,000
Provision for income taxes 65,300,000 71,200,000
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Net income $ 96,101,000 $105,531,000
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Net income per share $0.69 $0.74
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Dividends per share $0.35 $0.34
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Thirty-nine weeks ended
Sept. 24, 1995 Sept. 25, 1994
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Net Operating Revenues:
Newspaper advertising $ 1,592,697,000 $ 1,554,332,000
Newspaper circulation 635,454,000 635,809,000
Broadcasting 322,650,000 286,689,000
Outdoor advertising 186,562,000 176,031,000
Other 122,639,000 123,072,000
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Total 2,860,002,000 2,775,933,000
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Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 1,622,790,000 1,556,523,000
Selling, general and administrative
expenses, exclusive of depreciation 513,536,000 501,850,000
Depreciation 116,578,000 123,204,000
Amortization of intangible assets 34,118,000 33,961,000
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Total 2,287,022,000 2,215,538,000
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Operating income 572,980,000 560,395,000
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Non-operating income (expense):
Interest expense (31,723,000) (32,204,000)
Other (627,000) 2,224,000
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Total (32,350,000) (29,980,000)
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Income before income taxes 540,630,000 530,415,000
Provision for income taxes 218,900,000 214,400,000
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Net income $ 321,730,000 $ 316,015,000
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Net income per share $2.30 $2.17
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Dividends per share $1.03 $1.00
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GANNETT CO., INC.
BUSINESS SEGMENT INFORMATION
Thirteen weeks ended
Sept. 24, 1995 Sept. 25, 1994
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OPERATING REVENUES:
Newspaper publishing $760,075,000 $ 771,309,000
Broadcasting 104,787,000 95,189,000
Outdoor advertising 67,399,000 65,929,000
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Total $932,261,000 $ 932,427,000
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OPERATING INCOME (NET OF DEPRECIATION AND AMORTIZATION):
Newspaper publishing $136,344,000 $ 167,691,000
Broadcasting 38,513,000 27,243,000
Outdoor advertising 9,723,000 7,006,000
Corporate (15,166,000) (14,685,000)
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Total $169,414,000 $ 187,255,000
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DEPRECIATION & AMORTIZATION:
Newspaper publishing $ 36,169,000 $ 38,920,000
Broadcasting 6,991,000 7,381,000
Outdoor advertising 4,183,000 4,998,000
Corporate 2,355,000 2,410,000
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Total $ 49,698,000 $ 53,709,000
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Thirty-nine weeks ended
Sept. 24, 1995 Sept. 25, 1994
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OPERATING REVENUES:
Newspaper publishing $2,350,789,000 $2,313,213,000
Broadcasting 322,650,000 286,689,000
Outdoor advertising 186,563,000 176,031,000
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Total $2,860,002,000 $2,775,933,000
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OPERATING INCOME (NET OF DEPRECIATION AND AMORTIZATION):
Newspaper publishing $ 492,434,000 510,447,000
Broadcasting 112,119,000 87,902,000
Outdoor advertising 18,007,000 10,462,000
Corporate (49,580,000) (48,416,000)
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Total $ 572,980,000 $ 560,395,000
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DEPRECIATION & AMORTIZATION:
Newspaper publishing $ 109,585,000 114,063,000
Broadcasting 21,061,000 21,470,000
Outdoor advertising 12,617,000 14,238,000
Corporate 7,433,000 7,394,000
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Total $ 150,696,000 $ 157,165,000
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands of dollars)
ASSETS: Sept. 24, 1995 Dec. 25, 1994
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Cash and marketable securities $ 35,537 $ 44,252
Accounts receivable, net 468,278 487,615
Inventories 101,042 53,047
Prepaid expenses and other current assets 70,750 65,923
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Total current assets 675,607 650,837
Property, plant and equipment, net 1,413,786 1,428,144
Excess of acquisition cost over
the value of assets acquired 1,442,304 1,472,002
Other assets 193,859 156,069
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Total $ 3,725,556 $ 3,707,052
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LIABILITIES AND SHAREHOLDERS' EQUITY Sept. 24, 1995 Dec. 25, 1994
-------------- -------------
Current maturities of long-term debt $ 59,824 $ 1,026
Accounts payable and current portion
of film contracts payable 223,062 215,885
Accrued expenses and other current
liabilities 244,483 224,786
Dividends payable 49,158 47,739
Income taxes 18,612 37,618
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Total current liabilities 595,139 527,054
Deferred income taxes 151,522 164,691
Long-term debt, less current portion 541,536 767,270
Postretirement medical and life
insurance liabilities 308,714 306,863
Other long-term liabilities 108,776 118,936
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Shareholders' equity 2,019,869 1,822,238
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Total $ 3,725,556 $ 3,707,052
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands of dollars)
Thirty-nine weeks ended
Sept. 24, 1995 Sept. 25, 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 321,730 $ 316,015
ADJUSTMENTS TO RECONCILE NET INCOME TO OPERATING CASH FLOWS
Depreciation 116,578 123,204
Amortization of intangibles 34,118 33,961
Deferred income taxes (13,168) (12,916)
Gain on sale of assets (123) (5,614)
Other, net 21,011 29,571
Changes in other assets and
liabilities, net (84,147) 27,765
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Net cash flow from operating activities 395,999 511,986
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (106,376) (95,630)
Payments for acquisitions, net of
cash acquired - (30,910)
Increase in other investments (2,320) (24,458)
Proceeds from sale of certain assets 1,622 54,946
Collection of long-term receivables 4,711 1,012
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Net cash used by investing activities (102,363) (95,040)
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NET CASH USED FOR FINANCING ACTIVITIES
Proceeds from long-term debt - 64,741
Payments of long-term debt (166,936) -
Dividends paid (142,915) (146,310)
Common stock transactions, net 7,227 (385,196)
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Net cash used for financing activities (302,624) (466,765)
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Effect of currency exchange rate change 273 (397)
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Net decrease in cash and cash equivalent (8,715) (50,216)
Balance of cash and cash equivalents
at beginning of year 44,252 75,495
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Balance of cash and cash equivalents
at end of third quarter $ 35,537 $ 25,279
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